Starting a business in the United Kingdom can be a daunting task, but choosing the right business structure can make a big difference. If you’re considering a limited company (LLC), here are some advantages you don’t want to miss:
Simplified Process and Personal Protection
Creating an LLC is straightforward and can be done quickly. Plus, an LLC provides personal protection to its owner against legal disputes, so your personal assets won’t be at risk.
Separate Legal Identity and Flexibility
An LLC has a separate legal identity, making it easier to introduce new shareholders and directors or even pass the company down through generations. Plus, it’s simpler to sell an LLC compared to a sole trader or partnership business.
An LLC offers tax benefits compared to a sole trader business, resulting in lower tax rates overall and less tax payable when withdrawing funds.
Greater Flexibility in Benefit Planning and Wealth Extraction
The owner of an LLC has greater flexibility in benefit planning, pension planning, and wealth extraction from the company. Withdrawing money can be done in various ways, such as through dividends or salary.
To sum up, opting for a limited company (LLC) as the structure for your UK business has numerous benefits, such as streamlined process, safeguarding of personal assets, distinct legal identity, tax advantages, increased flexibility in benefit planning and wealth extraction, and others. Consulting a qualified expert can help you make the most of these perks
Ready to explore more benefits of an LLC? Tune in to this week’s I Hate Numbers podcast!Now, let’s talk about the fabulous resources we’ve cooked up for you. Our clients have their own client portal (think of it as your secret recipe book) with a Tax Return Checklist.